Lawsuit: Investor Raises Concerns Over CardConnect, First Data Merger

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CardConnect Corp., its board of directors, First Data Corporation, and a subsidiary are the defendants in a proposed class action lawsuit that claims they failed to include required information in a statement regarding a proposed merger between CardConnect and First Data. The plaintiff argues that the proposal undervalues CardConnect, but that the figures and analyses used to arrive at the deal were not properly disclosed in the solicitation statement. He further claims that the companies discouraged alternate buyers from submitting proposals by including provisions in the merger agreement that restricted solicitation and termination of the merger. From the complaint:

“[T]he Proposed Transaction will deny [proposed class members] their right to share proportionately and equitably in the true value of the Company’s valuable and profitable business, and future growth in profits and earnings.”